If you could do one thing differently when purchasing DVC what would it be?

[kapicka]

We have several use years but it is ok. I would have purchased VGC at pre-construction pricing and broken a big contract into into 4-5 smaller ones so that I could sell them off if and when they are not needed.

If DVC was a quickly depreciating thing like many timeshares I would recommend to people to buy the minimum you can (or even not to buy) but since it has held value and even increased I have no regrets over number of points purchased.

 

[icydog]

If it's a comparable price there's nothing wrong with it. However historically the prices haven't reflected the value of the lost points. The swing between a fully loaded and fully stripped contract is maybe $30 a point minus the dues one would have to pay. So realistically a fully stripped contract would have to be $15-$20 a point less AND one would not have to pa dues for the current or upcoming UY. Remember dues are charged on a calendar year basis. As an example, Dec UY dues coming in Jan are actually for 11 months of the 2016 points.

Here's a concrete example using round numbers. Let's assume 100 points and a price of $100 a point for an Oct UY with all 2015 points banked and all 2016 & 2017 points. Assume dues at $6 a point for ease of discussion. Let's further assume you reimburse for the 2016 points and pay the 2017 dues (overpayment) but don't pay any dues on the banked points (standard and will compensate for the overpayment. So around $11600 with $400 for closing and dues including 2017. To come out "even" in this extreme example, one would need to get the stripped contract at roughly $80 a point with no fees reimbursement AND seller prepaying the 2017 dues. Somewhere in the range of $8400, $3200 less.

That's the financial aspect but there may be other factors. If one is looking for something specific or hard to fine, the "extra" may be worth it in some cases. I just feel it's important to understand the financial side to make an informed decision.

I figure it this way. If I buy a contract it has to have all, or a smidge less than all, of the current years points banked into the next use year. Then to get the price per point is I divide the total price by the combination of new and banked points.
So in your example of
100 banked points and 100 points for the next use year =200 points

100 points x $100 would equal $10,000 that I'd need to pay for the contract.

Then I'd divide that by 200, the actual number of points I'd be receiving
$10,000/200=$50 per point.

I don't figure in closing or taxes since it's the same whether I buy a stripped or loaded contract.

I just compare apples to apples. That's why you should always buy a loaded contract.

 

[icydog]

We have several use years but it is ok. I would have purchased VGC at pre-construction pricing and broken a big contract into into 4-5 smaller ones so that I could sell them off if and when they are not needed.

If DVC was a quickly depreciating thing like many timeshares I would recommend to people to buy the minimum you can (or even not to buy) but since it has held value and even increased I have no regrets over number of points purchased.

Never buy a timeshare and expect appreciation. We're lucky but it could change. I own a lot of Marriott timeshares. At one time there was a vigorous ROFR program on all types of contracts. Today Marriott will usually only ROFR a platinum week at some resorts. This has greatly influenced and impacted the price and sale of Marriott timeshares

 

[Dean]

I figure it this way. If I buy a contract it has to have all, or a smidge less than all, of the current years points banked into the next use year. Then to get the price per point is I divide the total price by the combination of new and banked points.
So in your example of
100 banked points and 100 points for the next use year =200 points

100 points x $100 would equal $10,000 that I'd need to pay for the contract.

Then I'd divide that by 200, the actual number of points I'd be receiving
$10,000/200=$50 per point.

I don't figure in closing or taxes since it's the same whether I buy a stripped or loaded contract.

I just compare apples to apples. That's why you should always buy a loaded contract.

In general I'd agree. I haven't followed actual listings that closely the last couple of years and I know there are some that feel loaded listings are a lot harder to find lately. I do feel the best was to compare is simply the rental value of the points in question and that actually applies to some degree even between use years. I agree closing and taxes don't matter, but I feel maintenance fees matter GREATLY though they should be accounted for as part of the point value judgement. In your single requirement they wouldn't because you should get more points than you pay fees 100% of the time if getting all banked, current and future points.

 

[Jeff Z]

Just reading through this and most of you have an extreme amount of knowledge. I have a. I'd out for 78PP at BWV for 260 total.

2016 - 195
2017 - 260
2018 - 260

Is it worth the value at 78PP. We want to be on the boardwalk. Like jelly rolls and dinners at epcot

 

[ziravan]

Just reading through this and most of you have an extreme amount of knowledge. I have a. I'd out for 78PP at BWV for 260 total.

2016 - 195
2017 - 260
2018 - 260

Is it worth the value at 78PP. We want to be on the boardwalk. Like jelly rolls and dinners at epcot

If you are saying you have an accepted offer to buy 260 more or less loaded points for $78/point,

Yes. I think that's a pretty good deal.

260 points at BWV could be stretched very well. BWV has one of the very best combinations of location and point per night value.

 

[pangyal]

I would also say that the above contract has a good chance of being taken in ROFR.

 

[MouseOfCards]

Just reading through this and most of you have an extreme amount of knowledge. I have a. I'd out for 78PP at BWV for 260 total.

2016 - 195
2017 - 260
2018 - 260

Is it worth the value at 78PP. We want to be on the boardwalk. Like jelly rolls and dinners at epcot

Yes, that's an unbelievable deal!

 

[Jeff Z]

Thanks guys. It was approved. Just trying to confirm her logic.

 

[Jeff Z]

Correction 280 points. I missed typed.

 

[cw62803]

I bought two separate 160-point contracts on the secondary market and one 25-point add-on directly from Disney. If I had to do it again, I would buy one larger contract on the secondary market, rather than two - that way I wouldn't have to pay closing costs twice. I would also try to negotiate the price better than I did. (Even though my contracts are essentially identical, one cost me about $10 more per point - I was a little more experienced the second time I bought one and did a better job.) Finally, if I had it to do again, I would also be more intentional about my choice of use year. Since we typically travel in July and August, I would opt for a May or June use year. That we if we should ever have to cancel at the last moment - and have our points go into holding - we could use them during the next year's school vacation in April.

One thing I would absolutely do again is buy the bulk of my contract on the secondary market and 25 points from Disney. They say you should not allow Disney benefits to sway your purchase as they may be taken away at any moment, but the annual pass deal is too good for me to pass up. We can make two long trips on one annual pass.

 

[gharter]

i was happy with both of our purchases, the number of points and the proce paid.
The only thing I would have done differently would be have have purchased sooner.

 

[Duchie]

I originally looked back when DVC was first announced, when I was young and single and LOVEd going to Disney with my family and friends. When DH and I finally bought our contract, we chose OKW because of the size of the units, low point cost and resort theme. So now I wish I had had that contract all along!

 

[nagshead]

Great thread!

 

[jmatias]

Bought loaded BWV, BCV, and VWL contracts in 2004 and never looked back. Also bought direct AKV as we love savannah view. Have March, June and August UY but it works for us. Any leftover points are used at Aulani. Love our DVC!

 

[Jeff Z]

Has anyone had an attorney review these contracts?

 

[Shellyred8]

I have two:
1. I wish we would've bought more points when we initially purchased. We initially purchased enough for a week in a Studio. Then we stayed in a 1BR. I really like the 1br with more space and the laundry in the room. Now that we go more frequently, we spend a little more time at the resort, so having the extra space it nice.
2. We bought a resale contract that doesn't have points coming until Sept 2017. I would've negotiated only paying 2/3 of the annual dues for the 2017 points. My logic for this is that we won't have a full 12 months to "borrow" those points into the prior year use year, since we most likely won't close until mid-2017. I'm not sure how that will go over, or if anyone has ever tried that. But I'm going to keep it in mind for our next resale purchase.

 

[Jeff Z]

I have two:
1. I wish we would've bought more points when we initially purchased. We initially purchased enough for a week in a Studio. Then we stayed in a 1BR. I really like the 1br with more space and the laundry in the room. Now that we go more frequently, we spend a little more time at the resort, so having the extra space it nice.
2. We bought a resale contract that doesn't have points coming until Sept 2017. I would've negotiated only paying 2/3 of the annual dues for the 2017 points. My logic for this is that we won't have a full 12 months to "borrow" those points into the prior year use year, since we most likely won't close until mid-2017. I'm not sure how that will go over, or if anyone has ever tried that. But I'm going to keep it in mind for our next resale purchase.

Where did you buy your second contract?

 

[Shellyred8]

Where did you buy your second contract?

BLT

 

[Dean]

Has anyone had an attorney review these contracts?

There have been reports of people that did. The problems are that unless they have intimate timeshare knowledge and possibly knowledge of FL real estate, there's not a lot they can do. And if they do, they likely would already know the info. You can do better by investigating for at least 6 months on places like DIS.